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Sustainable Apparel Coalition and the Higg Index Inspiring collaborative action on sustainability in the apparel, footwear and home textiles industries
ISPO - February 2017
Johan James van BredaBD & Member Manager EMEA
Sustainable Apparel Coalition 3
Agenda
The Sustainable Apparel Coalition
The Higg IndexThe business case for SME’sQ&A
Sustainable Apparel Coalition 4Sustainable Apparel Coalition 4
An apparel, footwear, and home textiles
industry that produces no unnecessary
environmental harm and has a positive impact
on the people and communities associated with
its activities.
Sustainable Apparel Coalition (SAC) Vision
Sustainable Apparel Coalition 5
Theory of Change
Sustainable Apparel Coalition 5
Mission:Collect peers and competitors from across the
apparel, footwear and textile sector and together,
develop a universal approach to measure
sustainability performance that drives
transparency and identifies opportunities for impact
throughout the value chain.
Sustainable Apparel Coalition 6
SAC Stakeholders
Sustainable Apparel Coalition 6
Brands
Retailers
Government
Nonprofits
Industry Associations
Manufacturers
Service Providers
Academia
Brands & Retailers Manufacturers
Industry Affiliates Nonprofit, Academia, Government
Diverse Global Membership
Sustainable Apparel Coalition 8
SAC 2020 strategy
8Sustainable Apparel Coalition
Higg Index
Globally trusted industry standard for measuring
and improving sustainability
Full Transparancy & Accountability
Value Chain & Product Lifecycle
Consumers
Choose products based on trusted sustainability
information
25 Years Of Social Auditing
• Social auditing has become an industry in itself. Some estimate it a >2 Billion $ business
• Lack of hard data, but we know there are many duplications
• An illustrative example from one of our members (38 facilities)
• The audits are merely the same. Are they driving change? Honestly speaking: No!
Number/year Auditor man days Manufacturer staff man days
Brand audits 110 262 440
Certification audits 55 116 220
Internal audits 38 N/A 110
Sustainable Apparel Coalition 10
“Measurement with Intention” Standardized measurement
is a precursor to collective action.
Building the Higg Index: How We are Structured
Sustainable Apparel Coalition 11Higg Insight to Action
We develop tools. We support adoption of tools. We enable transparency on results.
Sustainable Apparel Coalition 12
Retail Module Pilot *2017
Facilities Environment Module (FEM) Brand Environment Module (BEM)Apparel & Footwear
FacilitiesModules
Brand/RetailModules
Facilities Social/Labor Module (FSLM) Brand Social/Labor Module (BSLM)
SUITE OF TOOLS
VERIFICATION 2016
VERIFICATION 2018 VERIFICATION 2017
VERIFICATION 2017 Design & Development Module (DDM)
Product Environmental Footprint
Tool *2018
Materials Sustainability Index (MSI)
ProductModules
Sustainable Apparel Coalition Data to Drive Change: How Higg Assesses Impact at All Stages of the Product Lifecycle 13
Higg Tools for each step along the Supply Chain
DESIGN & PRODUCTION
Design & Developments
Module (DDM)
CONSUMERS & COMMUNITIES
Product Environmental Footprint
(due 2018)
RETAIL
Retail Module Pilot
(due 2017)
MANUFACTURERS
Facilities Environment Module (FEM)
Facilities Social/Labor Module (FSLM)
BRAND
Brand Environment Module (BEM)
Brand Social/Labor Module (BSLM)
RAW MATERIALS
Materials Sustainability Index (MSI)
Data Contributor
Data Explorer
Sustainable Apparel Coalition 14
Brand Modules – Areas of Assessment
Sustainable Apparel Coalition 14
Brand/Retail Modules
1. Management
2. Materials
3. Packaging
4. Manufacturing
5. Transportation
6. Product Care &
Repair
7. End of Use
1. Internal S/L Performance
Management
2. S/L Performance Management
System for Partners in Value Chain
3. External Engagement; Community
Impact; Transparency & Public
Disclosure
ENVIRONMENT SOCIAL / LABOR
Assessing all Brands’ sustainability policies and practices
Sustainable Apparel Coalition 15
Facilities Modules – Areas of Assessment
15
Facilities Modules
1. Environmental
Management System
2. Energy Use & GHG
Emissions
3. Water Use
4. Wastewater/ Effluent
5. Emissions to Air
6. Waste Management
7. Chemicals
1. Recruitment & Hiring
2. Compensation
3. Hours of Work
4. Worker Involvement & Communications
5. Worker Treatment & Development
6. Health & Safety
7. Termination & Retrenchment
8. Value Chain Performance
9. External Engagement;
Community Impact;
Transparency & Public Disclosure
ENVIRONMENT SOCIAL / LABOR
Assessing all Facilities’ sustainability performance
Sustainable Apparel Coalition 16
Brand & Facilities Modules as your first step towards an holistic sustainability strategy
Brand Module
Sustainable Apparel Coalition
Primary Functions On Higg.org
1. Complete & post Higg Modules
Eliminate redundant surveys & audits
2. Connect & share Modules with supply chain
partners and SAC members
Drive transparency
3. Benchmark Performance to industry peers
Continuously improve
19Sustainable Apparel Coalition
Level 1Compliance,
Awareness and Understanding
Level 2Planning,
Managing and Demonstrating Performance
.
Level 3Aspirational
Innovation and System Change
.
Higg Assessments: Inherent Roadmap to Improvement
Sustainable Apparel Coalition 20
Higg Benchmarking: Insights to Impact
Sustainable Apparel Coalition 20
Sustainable Apparel Coalition 21
1,5+ MILLION
13,564
86
6,447Higg Accounts
HIGG ADOPTION
Total Brand Modules Posted
Total Facilities Modules Posted
Data Points on Higg.org
Sustainable Apparel Coalition 21
Higg Index Adoption: By The Numbers
86 Brands and 8000+ Facilities Reporting in 69 Countries
Above data as of 1/10/16
Sustainable Apparel Coalition 22Sustainable Apparel Coalition 22
ISPO 2017 : Sustainable Business Case for SMEs
Sustainable Apparel Coalition 23
Small Medium Enterprise (SME) Brand Pilot Project
Powered By Implemented By
With the support of
Sustainable Apparel Coalition 24
Small Medium Enterprise (SME) Brand Pilot Project
Goal: This two year project (January 2016 – December 2017) is to support SMEs move forward in their sustainability journey.
Objective: At the end of the project in December 2017 the SAC will have gained insight into the specific needs of SMEs and is able to tailor SAC support and tools to address those needs.
It will be:• A continuous improvement
through benchmarking and performance improvement
• Sharing best practices with SME peers
It will not be:• An obligation to become a member• It will not become an obligation to get
verified
In scope
• Use the Higg Tools; Brand and Facility, for both Environmental and Social & Labor modules
• Offer content feedback for future improvement of Higg Suite of Tools
• It is not mandatory to use the Higg suite of tools beyond December 2017
• One-on-One Supplier Support (besides global support to be discussed depending on geography of suppliers)
Out of scope
Sustainable Apparel Coalition
Key-insights to date
Key-insights :
• All participants completed the Brand Module (Environmental and Social/Labor) in less time than expected
• The Brand Module results provided value to time and resource constrained SMEs by giving insight into existing knowledge gaps, learning about industry best practices as well as providing a clear roadmap towards improvement
• The Higg Index 3-level approach, as well as anonymous industry benchmarking, made it insightful for SMEs which areas to prioritize and how to set goals against it
• Regular 1:1 calls with dedicated SAC support was needed in order to keep SMEs on track
• SMEs found most valuable the joint sessions with SAC members sharing their own experiences rolling out the Higg tools
• Meeting SME peers through this project resulted in not only exchanging of best practices but paved way for future collaboration
• The Higg.org platform enabled SMEs not only access to their suppliers environmental and social performance but also gave insight into anonymous industry benchmarking data that was not available before and made comparisons on performance possible
• SMEs require more time to gain internal buy-in in order to integrate performance improvement measures
• SAC facilitated in increasing (pre-competitive) supply chain collaboration amongst SMEs through overlap analysis and collective training efforts
Sustainable Apparel Coalition
Key-insights to date (2)
What can be further improved :
• SMEs found questions related to policies and documents challenging
• Existing Higg training guidance should be clearer, especially for SMEs
• Introduction to impact programs (and related investment funding) as well as furthering collective supply chain collaboration with other brands (such as SAC members)
Result 1 --> SME participants feedback has been included in the content update of the Facility Environmental Module v3 (launch November this year 2017)
Result 2 --> Besides integrating their feedback in the upcoming Brand Module v3 (kicking off this year). Several SMEs will be invited to participate in related task team work to develop content for the new version
Sustainable Apparel Coalition 28
SAC Engagement Benefits
Initiative/Platform Details SAC Member Higg Access Only
Higg.org • Access to all Higg.org tools (Brand, Facility and Design & Development Module) � �
iMeet Central • An online collaboration platform where you can find task team work spaces, reports, presentations, discussion forums, information about upcoming meetings and a full membership contact directory
� �
In-person Meetings • Invitation to SAC’s annual Full Member Meeting & Manufacturers Forum• Invitations to Regional Meetings � �
Ongoing Communications
• Bi-monthly Full Membership Calls deliver updates on Higg Index development and key issues for the apparel, footwear and home textile industries
• Dedicated point of contact within SAC
� �
Task Teams• Option to influence and participate in SAC task teams and collaboration
projects that cover a wide range of opportunity sets to drive sustainability impact
� �
Marketing & PR
• Company logo, description and spotlight on ApparelCoalition.org• Press Release template with proven positive reception by media• SAC and member involvement frequently appears in a diverse range of online
& print media
� �
Sustainable Apparel Coalition 29Sustainable Apparel Coalition 29
SAC Types of Engagement and Dues
SAC MemberAnnual Dues in USD
Higg Access OnlyAnnual Dues in USD
Brands and Retailers
Revenues exceeding $10 billion $50,000 N/A
Revenues $1 billion to $10 billion $40,000 N/A
Revenues $500 million to $1 billion $30,000 N/A
Revenues $100 million to $500 million $20,000 $10,000
Revenues $20 million to $100 million $10,000 $5,000
Revenues less than $20 million $5,000 $2,500
Sustainable Apparel Coalition 31
Thank you!
Feel free to contact me:[email protected]
31Sustainable Apparel Coalition
Stay in Touch:
Visit apparelcoalition.org
Follow us on @apprlcoalition
Like us on
Follow us on
Sustainable Apparel Coalition Data to Drive Change: How Higg Assesses Impact at All Stages of the Product Lifecycle 34
Consumers & Communities
Retail
Material Suppliers
Manufacturers
Logistics
The Product Life Cycle
Design
80% of a product’s environmental impact is
determined at the concept and design phase -
Sustainable Development, Energy and the City
Concept/BriefStrategy from Mgmt
Design & Development
Iterative Samples/Proto Production
Sustainable Apparel Coalition 35
Higg Suite of Tools
Higg Design & Development
Module (DDM)
Higg Materials Sustainability Index
(MSI)
MSI Contributor
MSI is:cradle-to-gate material scoring tool using a life cycle assessment (LCA) approach to engage
product design teams and our global value chain in environmental sustainability.
Sustainable Apparel Coalition 36Materials Sustainability Index
Solution: Materials Sustainability Index (MSI)
MSI use in the Higg DDM
44Sustainable Apparel Coalition Sustainability in Product Design 44Sustainable Apparel Coalition
MSI DDM
MSI DDMA Higg Product Tool meant to
score designs and educate
designers and developers about
decisions they can make to
improve sustainability of a product.
Higg MSIA Higg Product Tool meant to provide
transparency to MSI data, scores, and
methodology,
Brands and retailers can use MSI instead of asking suppliers for LCA data.
Environmental efforts are publicly recognized and rewarded.
Understanding impacts of your materials for a fraction of the usual cost.
Sustainable Apparel Coalition 56Materials Sustainability Index
Academics
Stakeholders
Researchers Customers
Company
Value for Material Manufacturers
Material vendors supply MSI scores on all materials à scalable
Brands can make better material decisions in material and product developmentà actionable
Brands and materials community use MSI methodology to assess innovationsà common language
Value for Brands
Sustainable Apparel Coalition Materials Sustainability Index
Provides benchmarking and
analytics
Prepares brands for external
communication
Internal need for a product
sustainability design tool
Encourages performance
improvement
Sustainable Apparel Coalition 58
=31
Engage Designers to Reduce Impact
Sustainability in Product Design
Sustainable Apparel Coalition 59Sustainability in Product Design
Scaling DDM Use
Higg Product Tools System Integration Automation
PLM
Running T-Shirt = 36New Jeans =54Jogger’s Socks = 26Waterproof Jacket = 149Striped Pajamas = 88Fancy Blouse = 65Wool Trousers = 97Winter Coat = 200…